Nykredit and Totalkredit have concluded bond sales in connection with the
refinancing of ARMs (Nykredit's Tilpasningslån and Totalkredit's BoligXlån)
based on the 10-day average price principle. Interest rates will be reset on 1
October 2010.
Bonds totalling DKK 44.3bn in nominal terms were sold in the reset period to
fund ARMs subject to interest rate reset based on the 10-day average price
principle. The auctions had an average bid-to-cover rate of 3.4.
The refinancing resulted in historically low rates. For a retail borrower with a
30Y annuity loan of DKK 1m (33% tax allowance), interest rate reset results in
the following cash rates and monthly net payments:
--------------------------------------------------------------------------------
| | ARMs | ARMs | ARMs funded |
| | funded by | funded by | by 5Y bonds |
| | 1Y bonds | 3Y bonds | (F5/X5) |
| | (F1/X1) | (F3/X3) | DKK |
| | DKK | DKK | |
--------------------------------------------------------------------------------
| Key figures for 2010 |
--------------------------------------------------------------------------------
| Cash rate, with repayments | 1.33% | 1.81% | 2.32% |
--------------------------------------------------------------------------------
| Monthly net payment, with repayments | DKK 3,290 | DKK 3,390 | DKK 3,510 |
--------------------------------------------------------------------------------
| Cash rate, interest-only | 1.31% | 1.80% | 2.32% |
--------------------------------------------------------------------------------
| Monthly net payment, interest-only | DKK 1,010 | DKK 1,280 | DKK 1,570 |
--------------------------------------------------------------------------------
| Key figures for 2009 |
--------------------------------------------------------------------------------
| Cash rate, with repayments | 2.20% | 3.15% | - |
--------------------------------------------------------------------------------
| Monthly net payment, with repayments | DKK 3,480 | DKK 3,720 | - |
--------------------------------------------------------------------------------
| Cash rate, interest-only | 2.18% | 3.14% | - |
--------------------------------------------------------------------------------
| Monthly net payment, interest-only | DKK 1,490 | DKK 2,030 | - |
--------------------------------------------------------------------------------
For detailed information on the bond sales, please refer to Appendix 1 and
nykredit.com/ir.
Enquiries may be addressed to Lars Mossing Madsen, Head of Mortgage Finance, tel
+45 44 55 11 66, or Nels Petersen, Head of Corporate Communications, tel +45 44
55 14 70/+45 20 22 22 72.
